With a few exceptions, all employers are required to participate in the state program or by offering a private plan option. The Hartford offers CA PFL combined with CA SDI on an Administrative Services Only (ASO) basis.
- January 1, 2021: CA PFL expanded to cover exigencies related to military active duty or call to active duty of an employee’s family member.
Frequently Asked Questions
What’s Covered Under the State Programs?
- Care for a seriously ill family member under CA PFL.
- Welcome a new child (through birth, adoption, or foster placement) under CA PFL.
- CA PFL covers exigencies related to military active duty or call to active duty of an employee’s family member.
- CA SDI covers employees’ Paid Leave for a worker’s own injury or illness not related to their job.
What Are the State Plan Benefits?
- CA PFL provides up to eight weeks and CA SDI provides 52 weeks of partial pay.
- The benefits are 60% to 70% of the weekly wage depending on an employee’s income, effective through December 2022.
- In 2021, the maximum weekly benefit is $1,357 per week. In 2022, the maximum weekly benefit increases to $1,540 per week.
- The minimum weekly benefit is $50.
- CA PFL and CA SDI calculates payment based on base period. Base period is the first four of the last five completed calendar quarters before the starting date of the new claim.
The weekly benefit amount is determined by using the quarter in which an employee was paid the highest wages in the base period.
NOTE: San Francisco Paid Parental Leave (SFPPL) supplements CA PFL (when used for bonding), providing eligible employees working in San Francisco up to eight weeks of their remaining weekly wage up to a weekly maximum. The weekly maximum may change annually. Effective in 2022, the weekly maximum is $1,027 (up from $905 in 2021) per week, bringing the combined weekly maximum to $2,567 (up from $2,262 in 2021).
How Are the State Programs Funded?
Employee contributions through payroll deductions fund CA PFL and CA SDI. Employers can elect to pay the employees’ share. In 2021, SDI withholding rate is 1.2 percent. The 2021 SDI taxable wage limit is $128,298 per employee- making the maximum withholding for each employee $1,539.58.
In 2022, SDI withholding rate is 1.1 percent. The 2022 SDI taxable wage limit is $145,600 per employee- making the maximum withholding for each employee $1,601.60.
What Are the State Plan Eligibility Requirements?
To qualify for benefits an employee has to have contributed to the CA SDI program through payroll deductions during the previous 18 months. A self-employed worker has to have contributed to the Disability Elective Coverage Program in the last 18 months.
An employee must have at least $300 in wages in the base period and have paid into SDI.
Do All Employers Need to Participate?
Any private business that has more than one employee – other than household workers – and pays more than $100 a calendar quarter must register with the Employment Development Department (EDD) and pay and collect state taxes including CA SDI.
Is There a Private Plan Option?
California allows employers to offer a self-funded voluntary Disability plan in place of CA SDI. The plan must include both Paid Medical and Paid Family leave. The State of California requires that if an employer opts out of one plan, they must opt out of the other. This plan can be managed by a private insurer on an Administrative Services Only (ASO) basis. The voluntary plan must provide all the benefits of CA SDI, with at least one benefit that is better than the state plan, and it cannot cost the employee more than SDI.
Employers – or a majority of employees – may apply to the Employment Development Department (EDD) for approval of a voluntary plan.
The Hartford can administer CA PFL on approved CA SDI Voluntary plans, but not on a standalone basis. The Hartford offers Paid Family Leave administration on an integrated basis with our self-insured California State Disability Insurance, Short-term Disability and Long-term Disability offerings.
Is The Hartford Offering PFML Coverage in CA?
The Hartford can administer CAVDI with PFL voluntary plans. All voluntary plans must administer both the CA VDI as well as PFL benefits together.
Please reach out to your employee benefits representative at The Hartford for additional information.
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This informational material is subject to change as The Hartford continues to receive guidance from states and municipalities. It shall not be considered legal advice. The Hartford assumes no responsibility for legal compliance with respect to an employer’s business practices, and the views and recommendations contained herein shall not constitute The Hartford’s undertaking on a company’s behalf, or for the benefit of others, to determine or warrant that an employer’s business operations are in compliance with any law, rule, or regulation. Employers seeking resolution of specific legal or business issues, questions, or concerns regarding this topic should consult their own attorney or business advisors; and employees should continue to consult their employers’ Human Resources or other employment benefits department for guidance on the application of any law, rule, or regulation.
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